Property Management Fees Charged When Leasing a House or Business Place
When you lease out a business place or your home, having a property management company to do all the hard work in finding potential lessees and doing the negotiations, will take out the burden from your shoulders. However, this is not free, and there is property management fees charged for the services given by the property management company. In this respect you will make sure that you are getting your money’s worth from the fees you are paying. The management company may charge you the fees commensurate to the services rendered, individually for each service rendered or as a whole, with only one fee charged. The fees can be a percentage of the monthly charge for rent, and will be arranged with both of you in concurrence.
Property management fees will also be charged when the company can get a renewal of the lease by the present occupants. If no renewal of lease is happening, the property management company may advertise the place for lease. Advertising costs may be on the account of the property owner or the management company will just pay for it and charge the expense together with their commissions. This will be agreed upon by both the property management company and the property owner. There can also be other costs like if maintenance work is being done on the leased property. The property management company may charge a mark up on the fees of the maintenance work rendered because of the services rendered on finding the right maintenance people.
All these property maintenance fees will be a burden to you and eat up on your profits; however you are not also burdened on finding the potential renters to your place or finding maintenance personnel who will do the maintenance jobs for you. You have to weigh in on all these, whether to do all the tasks yourself or just lay down the burden with the property management companies. You can bargain with the management companies for a flat monthly rate or charge individually for every service rendered and all these will be up to your negotiations. Finding the right property management company will therefore be that much important to you; the ability to find the company that will give the best services while charging not so much on monthly fees.
It is of much importance that you will properly lay out what the agreed services will be when you make the contract with your property management company. The property management fees should be included in the contract and the specific services to be rendered. It can be on an individual charge for each service or a flat rate charged, but what is important is that the services you want included should be in the contract. This should be done to avoid any misunderstandings that may happen later. This is important so that you will not be overcharged while also having the required services to be done. When the tasks are all laid out in the contract, this will ensure that the management companies will be compensated and also you get your money’s worth.
Written in behalf of Atwell and Co, offers the best property management Melbourne.